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Buying a home out of state comes with more moving parts than a local purchase. From organizing your timeline to house hunting remotely and securing a mortgage, remote homebuying requires extra planning and coordination.
By understanding the unique challenges of buying a home in another state, you can navigate the process with confidence and find a home that fits your needs, no matter how far away.
There are many reasons why a person may be motivated to relocate, whether it’s to a new city or to a new state. Identifying your reasons for moving can also help you recognize what you’ll need out of your new neighborhood, your commuting distance, or how close you are to amenities.
Some common reasons people decide to move out of state are:
Your out-of-state move will require a larger time investment and further planning than a simple move across town. To be sure you’re fully prepared, ask yourself some important questions before the process begins.
An important aspect of house hunting includes identifying the differences between your “must have’s” and “nice to have’s” for your new home. How many bedrooms will your family need now and in the future? Do your pets require a fenced-in yard or a special room to accommodate their care? Do you have mobility concerns and need a primary bedroom on the main floor? Answering these questions will help you focus on what really matters.
You should also make a list of your neighborhood “must have’s.” Will you want a home with a lot of acreage, or do you need a place close to a city’s center? What amenities are important to you, like access to healthcare, groceries, or parks and recreational areas? This will help you figure out your ideal area and help your Real Estate Agent know what matters most to you.
If you already own a home, buying and selling a home at the same time can take careful planning—especially when moving across state lines. If it takes you longer to find a new home to purchase than the sale of your current home, you may have to configure additional living arrangements. This could be as simple as staying in a hotel for a few days. For a larger gap, you may consider renting out an apartment or home temporarily. You may also be able to add a contingency to your home purchase contract.
By figuring out a plan before you start the mortgage process, you’ll feel more confident through timeline shifts and the moving parts that come with buying and selling homes.
As soon as you know what state you’ll be moving to, start to develop an effective travel strategy. This plan should include any stops you’ll have to make along the way, travel costs, and coordination between your moving company.
Some out of state buyers have a strict time constraint because of a new job, family, or other specifics. Knowing when you must move will help you plan the ways in which you move through the homebuying and mortgage processes.
When planning a long-distance move, you may not have the time and means to visit your new neighborhood and property in person. While this is the best way to know if an area meets your needs, it isn’t the only way.
Once you decide what state and city you want to relocate to, the next step is researching neighborhoods that align with your needs. Ideally, visiting a neighborhood in person can help you understand the area, traffic patterns, and the local amenities.
However, this isn’t always possible when configuring a long-distance move. Instead, focus on things you can do from a distance. You can still research the cost of living, school districts, safety ratings, and local amenities that match your lifestyle.
State and local laws may affect things like your taxes, Homeowner Associations, and even the details of your closing. Connecting with a Real Estate Agent that lives and works in the area you’re moving to will help you iron out these specificities and keep you from being blindsided further down the line.
Real Estate Agents are helpful for all buyers, regardless of where you plan on moving. They are trained negotiators, have access to a variety of home listings that fit your “must haves,” and can help you navigate local trends that you may not consider.
Since you may not meet your agent in person during your home search, look up their reviews and credentials. You’ll want an agent who is reliable and whose communication style matches yours. If there is a time difference, will your agent be available when you need them? Will you be able to respond to emails in a timely manner, or would you prefer phone calls?
In addition to assuring your Real Estate Agent is available when you need them, they can also offer expert advice about the new location. When relocating, there are bound to be questions. Your local agent can help you understand your new city and state laws, provide unique insights about neighborhoods, and may even be able to help you look at homes remotely.
Modern real estate technology has made it easier for buyers to purchase homes without visiting in person. When you purchase a home without visiting it in person, it’s called buying sight unseen.
When you look up a property online, you’ll most likely be directed to the home’s listing, which will list the home’s location, sale price, and specific details about the home. Listings also frequently include photos of the property, usually of the home’s exterior, interior rooms, and the basement or yard, if applicable. If the photos are recent, they can offer an accurate understanding of the home’s size, features, and its condition.
Some listing sites offer interactive virtual models of homes. While these representations are not perfect reflections of the property, you’ll be able to get a deeper impression by moving around inside, zooming in and out, and rotating within the space.
Although you may not be able to visit your potential new homes in person, your local real estate agent can show you around. You can ask for specific things that listing photos or 3D tours can’t reproduce, like what’s behind certain doors or how crowded the kitchen is.
An inspection uncovers potential issues with the home. Your inspector visually assesses your home’s physical structure and numerous elements, including:
Your inspector will put together a comprehensive report which may include summaries, photographs, checklists, and additional notes.
If you’re purchasing sight unseen, it may be beneficial to ask your inspector to also take note of any smells. Gathering as much information about the property is important, especially when you’re relocating and buying a home. A carpet may look fine in listing photos but can’t capture lingering smells.
Regardless of where you’re purchasing a home, pre-approval letters stand out far more than a potential buyer with a pre-qualification letter.
Pre-qualification helps you know if you may satisfy a lender’s general mortgage criteria based on your self-reported income, assets, credit, debt, and other financial information. While pre-qualification information is helpful in the early stages of homebuying, such as the creation of your budget, it doesn’t tell the whole story about your borrowing power.
Pre-approval happens when you participate in a thorough financial review to verify your conditional mortgage approval. You’ll also receive written proof from a lender that confirms you have the financial means to qualify and pay back your loan.
When it’s time to make an offer, include your pre-approval letter to show the seller that you have the means to afford the home. This is especially important when purchasing remotely because it assures the seller that you’re ready for an efficient and speedy closing, no matter how far away you may be.
We believe you should be able to buy a home that suits your needs regardless of how far away you are. That’s one of the reasons why we have branch locations in various states, allowing you the convenience of home financing from local experts who support you. Whether you’re relocating for work, lifestyle, or just a fresh start, having support can make buying a home out of state much easier. To find out more about what areas we cover, contact us and check our branch locations.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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